A special meeting of the County of Dukes County Commissioners was held on Wednesday, May 22, 2002 at 7:00 p.m. in the Conference Room of the County Administration Building, notice of such meeting having been posted as required by law.

Murray Frank and County Commissioners discussed the following health issues:

· Development of an integrated health plan

· A non profit insurance plan

· A plan that enables Council to offer a product

· A meeting with physicians early in June

· Importance of networking

· Above mentioned memo of 5/21/02 spells out advantages

· Discussions regarding financial liability

· Fund raising and donations

· Receivables and disbursement are part of 501(c)(3)

· Subsidizing people without funds

· Is 501(c)(3) a legal enterprise?

Commissioner Sawyer was prepared to make a motion regarding the 501(c)(3), but it was agreed that the Commissioners needed time to review all of he information before them. They will meet again next week.

It was determined that there is money in the Ropes and Gray’s legal fund to review this matter.

Murray Frank informed the Commissioners that it was necessary to file papers with the Secretary of State and that incorporation papers have a provision for making amendments. He went on to explain that an attorney was looking at this who has also written plans for others including Harvard Pilgrim. The plan was to set up The Island Health Plan without County involvement (as a separate entity) but it would be nice to have the County’s blessing. He was not asking for County interaction; he wants the 501(c)(3) to be a public and private entity.

Commissioner Alley asked if the plan was to go ahead and apply for the 501(c)(3)?

A Motion was made by Commissioner Jason to get the necessary papers and

Documents together to apply for 501(c)(3); Commissioner Flynn Seconded the

Commissioner Collins explained that his vote came out of the proposal that as many as 35 people could be part of a committee to oversee the 501(c)(3) health plan and that was too unwieldy. Commissioner Wey wanted to see counsel’s opinion before he changed his vote. Mrs. Borer asked that counsel look into financial matters with the Department of Revenue. She thought this was to be a partnership between County and the 501(c)(3) – now there was talk about something separate. She would like to revisit the proposal after everyone had read the documents and legal counsel had advised. She would discuss this with Ropes and Gray. Commissioner Jason wanted to know if the County had any liability endorsing the 501(c)(3)? Commissioner Jason stated that the Health Council worked with the Hospital without
a 501(c)(3) - He wanted to know if there were any problems with that?

Both Mr. Frank and Commissioner Wey expressed their desire to have the County be part of this by giving their blessing.

There was concern about conflicts arising regarding money. Mr. Frank stated the need for a partnership with an insurance company because of the need for funding backing.

Commissioner Sawyer had a problem with blessing something that the Commissioners had no role in – which could lead to problems. Commissioner Flynn suggested the need to seek counsel to anticipate what questions could be asked and to make sure that the Commissioners and the County Manager would not be involved in that corporation. An appointed board would make decisions. He went on to say that they were only asking for the Commission’s acknowledgement, not membership. It there was a need for County involvement, he suggested they seek counsel.

Mr. Frank left at 7:40 PM.

Approval of the April 24, 2002 Minutes was tabled until next meeting.

Commissioner Jason Moved that they enter into Executive Session to discuss

strategy with respect to possible litigation and not to reconvene in open session.